WHITE HOUSE: Biden: Canada And US To Fill Wheat Supply Shortage
US President Joe Biden speaking at a humanitarian briefing for Ukraine in Poland has delivered remarks promising to deliver food security to Europe.
- Biden: 'The bad news is they're the bread basket of the World, Ukraine and Russia.'
- Biden: 'We the United States are gonna do our part. We're the third largest producer of wheat in the world and our Canadian friends are going to do the same.'
- the United Nations’ World Food Program has warned that the situation is becoming 'catastrophic' with a high risk of famine in parts of the Middle East and Africa.
- Russian wheat is currently not subject to Western sanctions but rises in associated costs from sanctions and a reluctance from Western companies to trade with Russia has further exacerbated the crisis.
- Egypt, Turkey, Morocco, and Sudan are all considered highly exposed to Russian and Ukrainian wheat and there is a high risk of civil unrest or political violence if measures aren't put in place to resolve the crisis.
- So far a specific policy have not been unveiled and US wheat exports have not seen a significant jump in volume. According to World Grain this is due to higher US prices pricing out of most export tenders.
Imports of wheat from Russia and UkraineTellimer Research
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UK: RTRS: PM Wants 'Toughest Possible' Sanctions, 'Could Change RUS-UKR Outcome'
Reuters reporting that UK PM Boris Johnson, speaking to representatives from the finance industry and regulators, that the UK 'wanted the toughest possible next tranche of Russia sanctions and that he thinks it could change the outcome'.
- Johnson came under pressure in PMQs earlier today to outline a tougher set of sanctions on Russia, with the 'first tranche' announced yesterday (hitting Duma members, 3 oligarchs, and 5 smaller Russian banks) criticised for being too narrow considering UK's hardline rhetoric on Russia-Ukraine crisis.
US TSY FUTURES: Breaking Higher, Following Bund Lead
Tsys paring losses now, 30Y bond near steady on day to NY session high (30YY appr 2.251%) following Bund lead (RXH2 climbed to 166.08) see 1105ET bullet.
Earlier cautious risk-on evaporated on renewed chatter over Russia invasion plans withing 48 hours (Newsweek). Russia/Ukraine tension gaining traction: Russia CDS 5y +76.126 to 424.32 -- off morning high of 433.33.0
Bloomberg
US 10YR FUTURE TECHS: (H2) Trend Needle Still Points South
- RES 4: 128-22+ High Jan 24
- RES 3: 128-01+ 50-day EMA
- RES 2: 127-24 High Feb 4
- RES 1: 127-09 High Feb 22
- PRICE: 126-13+ @ 16:02 GMT Feb 23
- SUP 1: 125-17+ Low Feb 10 and the bear trigger
- SUP 2: 125-06+ Low May 30 2019 (cont)
- SUP 3: 125-04+ 2.00 proj of the Jan 13 - 19 - 24 price swing
- SUP 4: 123-23+ 2.0% 10-dma envelope
Treasuries faded further Wednesday, retreating to trade either side of the 20-day EMA (126-12). The trend outlook remains bearish and recent gains are considered corrective. Moving average studies point south and a price sequence of lower lows and lower highs remains intact. The bear trigger is unchanged 125-17+, the Feb 10 low. On the upside, a resumption of gains would expose the 50-day EMA at 128-01+.
